Sometimes, organizing funds for fulfilling your business dreams really becomes tough but now, you should not let the stress hit your head as there is a multitude of fund options available in the market. Among many fund options, business loan is one which is quite popular around the society.
Since the demand for the loan is high, there are ample number of moneylenders available in the market. Today, out of those many, we are going to discuss one of the leading commercial banks’ business loans viz. Bank of Baroda business loan.
Bank of Baroda is a renowned public sector bank in India that extends business loans to self-employed professionals, Micro, Small and Medium Enterprises (MSMEs), corporates and businesses.
The bank also offers customized business loan products to help borrowers meet their business requirements. Some of the popular business loan products of Bank of Baroda are working capital loans, export finance loans, bill finance, bridge loans, short-term corporate loans and term finance. Let’s discuss in little depth about the Bank of Baroda business loan.
What is customized business loan scheme of Bank of Baroda?
Bank of Baroda offers various types of business loans to different types of customers to help them meet their specific business requirements and this is one of the reasons why it is approached by the loan seekers for the best business loan in India. Following are some popular business loan schemes of Bank of Baroda. Take a look at their highlights:
|Popular Bank of Baroda business loan schemes – 2021|
|Loan scheme||Loan amount||Repayment tenor||Rate of interest|
|Baroda vidyasthali loan (for educational institutes)||Up to Rs. 15 crores||Up to 7 years (including moratorium period of 2 year)||8.35% + SP onwards|
|Loan against rent receivables||Up to Rs. 200 crores||Up to 10 years||For Landlords of BOB Branch Premises – 7.60% + Strategic Premium + 1.25%|
|For others – 7.60%+ Strategic Premium+3.25%|
|Commercial vehicle finance||Up to Rs. 30 crores||Up to 5 years||For Transporters – 7.60 + Spread ranging from 0.55% to 1.20%|
|Baroda business loan for professionals||Up to Rs. 5 crores||Up to 7 years||As per standard applicable rates|
The aforementioned details may vary as per the potential adaptations by Bank and RBI as per their policies. Besides these, there is a multitude of business loan schemes offered by Bank of Baroda for varying types of borrowers. These are:
- Baroda weaver mudra scheme
- Baroda composite loan
- Baroda arogyadham loan
- Baroda loan for restaurants
- MSME capex loan
- MSME loan
- MSME textile scheme
- PSB loans in 59 minutes
- Baroda loan to business correspondents
- Loan for construction and mining equipment
- Scheme for professionals
- SME medium-term loan
- SME short-term loan
- Bill/invoice discounting under value chain finance
- Vendor bill discounting for large real estate developers
- Term finance
- Working capital finance
What are the eligibility criteria of Bank of Baroda business loan?
There are multiple factors that determine your eligibility for Bank of Baroda business loan, although, two most fundamental and essential parameters are your loan creditworthiness and your credit history. Besides these, some other fundamental business loan eligibility requirements by the bank are:
Since age is a significant factor, every lender considers it before giving a loan to a borrower. It also determines your repayment capacity, thereby, lenders consider it. Bank of Baroda considers only those loan seekers whose age lies between 21 years and 65 years.
- CIBIL score
To avail approval on Bank of Baroda business loan, your credit score must be above 750. Your full credit report will be considered by the bank while deciding on your eligibility for a business loan.
- Business strength
The bank considers how sturdy the business is. In other words, the bank will assess whether your business is persistent or possess the potential to grow. To evaluate the strength of your business, the bank will look upon the growth scale in your business’s sales.
So, to boost your odds of getting your business loan application approved in Bank of Baroda, you must demonstrate an increase in your business’ sales and future work to the bank.
What are the documents required for Bank of Baroda business loan?
As there are different sorts of businesses around the market, the requirements for businesses also vary. Consequently, Bank of Baroda’s eligibility criteria and document requirement vary too in accordance with the type of loan scheme. Although, some of the document requirements are there that remain common in every type of Bank of Baroda business loan scheme. Here these are:
- Proof of identity (aadhaar card, PAN card, voter ID card, passport, etc.)
- Proof of address (aadhaar card, PAN card, passport, bank statement, rent agreement, etc.)
- Proof of business (PAN card, sales tax, service tax, registration documents, copy of partnership deed, registration certificate by RBI, SEBI)
- Copy of ITRs of the last 2 years
- 2 recent photographs
- Project reports
- Bank statement of the last 6 months
What are the benefits of availing Bank of Baroda business loan?
As every loan comes along some features and benefits, likewise, Bank of Baroda business loan comes with the following benefits:
- Competitive rates of interest
The Bank of Baroda business loans are offered on appealing rates of interest starting from 11.15% p.a.
- Customized schemes
The bank offers different loan schemes for different business sectors, i.e., Vidyasthali scheme for educational institutions.
- Instant processing
Bank of Baroda comprehends the time-sensitivity of a business, therefore, they process the loan applications quickly. The loan amount gets disbursed into the borrower’s bank account as soon as the loan application gets approved.
Bank of Baroda stands out to be one of the prominent commercial banks in India when it comes to finding the best bank for business loan in India. You can apply Bank of Baroda business loan easily either by visiting the business loan page on the official portal of the bank or by directly visiting the nearest Bank of Baroda branch.
In order to get further information about the loan, you can also get in touch with the bank’s associates via dialling their toll-free number 1800 180 6763.
Eventually, Bank of Baroda business loan will support you in building your business and making your dream a reality. Bank of Baroda provides appealing rates of interest and various business loan schemes to select from.
The bank not only offers a hassle-free business loan process but also has no hidden charges, seamless documentation process and instant disbursal process.